Apart from stagnant wage growth, dismal economic growth, and tumbling spending growth, Americans remain 'confident' according to University of Michigan. Current conditions fell very modestly but 'hope' rose to its highest since January. Inflation expectations were steady (near record lows) but buying climates improved MoM.

It seems UMich respondents do not care about wage growth (just the Nasdaq)…

But are certainly not turning those animal spirits into real spending…

We stroingly suggest investors do not look at the 99/01 period when PCE dropped, sentiment reamined high – pinned by the Nasdaq – only to end very badly.